Managers can only use FIFO process costing if it is reflected in the physical flow of units.

Name: Managers can only use FIFO process costing if it is reflected in the physical flow of units.
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Question

Quizplus · Accepted Answer

Managers can choose FIFO (First-In, First-Out) process costing method for accounting purposes even if it does not match the actual physical flow of units through the production process. The choice of costing method is an accounting decision that does not have to mirror the physical movement of goods.

Managers Can Only Use FIFO Process Costing If It Is